Binance rejects claims tied to Iran-linked laundering, saying compliance checks, investigations, and KYC rules show no direct transactions occurred.
Binance has rejected claims that its platform helped Iranian-linked groups move funds. The exchange says recent media reports cited by U.S. lawmakers rely on false claims. Lawyers for the company responded directly to Senator Richard Blumenthal, who is leading a congressional inquiry. Binance argues its compliance systems and internal reviews show no direct transactions with Iranian entities.
Binance Defends Compliance Program Amid $2B Iran Laundering Claims
Lawyers representing Binance criticized allegations that the exchange allowed sanctioned Iranian actors to launder nearly $2 billion through its platform. Reports from The Wall Street Journal cited anonymous sources and internal documents to support those claims.
Last month, the Senate’s Permanent Subcommittee on Investigations asked Binance to provide records tied to alleged links between the exchange and Iranian-backed groups. The request focused on potential exposure to entities suspected of terrorist financing.
Binance’s legal response called the reports inaccurate and defamatory. According to the company, the claims misrepresent both the facts and the actions taken by its compliance teams.
Monitoring Systems and Compliance Team Highlighted in Senate Response
A letter sent on Friday stated that Binance recognizes the importance of the investigation. At the same time, lawyers argued the media reports used as the basis of the inquiry rely on claims that lack credible evidence.
Company representatives also pointed to strict compliance procedures. Identity verification is mandatory for all users, and residents of Iran are barred from the platform.
We’ve voluntarily responded to Senator Blumenthal’s inquiry which raises false and defamatory allegations reported by the WSJ. While we take such matters seriously, it’s important for us to highlight our industry-leading compliance which we've worked hard to build and protect our… pic.twitter.com/qOZ7h1y5nu
— Richard Teng (@_RichardTeng) March 6, 2026
Binance also described the scale of its compliance and investigative work.
- Compliance staff now exceeds 1,500 employees worldwide. Many focus on sanctions and financial crime investigations.
- More than 25 monitoring systems track suspicious activity and flag potential illicit transactions.
- Binance processed over 71,000 law enforcement requests in 2025 alone.
- Cooperation with authorities helped recover more than $752 million linked to criminal activity.
Data from blockchain analytics firms also shows a decline in exposure to suspicious wallets. Binance says exposure dropped from 0.284% of exchange volume in early 2024 to just 0.009% by mid-2025.
Exposure to four Iranian crypto exchanges also declined sharply. According to Binance, activity tied to those platforms fell from $4.19 million to roughly $110,000 over two years.
Company lawyers also addressed two entities cited in the Senate inquiry: Hexa Whale and Blessed Trust. Both were removed from the platform after internal investigations.
Binance Says No Employees Fired for Compliance Escalations Amid Senate Inquiry
Law enforcement first contacted Binance in April 2025 about transactions between Binance wallets and external addresses. Investigators then reviewed account activity tied to those wallets.
Hexa Whale was later removed from the exchange in August 2025. Blessed Trust was offboarded in January 2026 following a separate investigation into suspicious transactions.
Binance also disputed claims about Iranian accounts operating on the exchange. Reports suggested compliance staff had identified roughly 2,000 accounts tied to Iranian entities.
Company lawyers said that the claim is incorrect. Binance says identity verification is required, and users in Iran are not allowed to use the platform.
The exchange also addressed allegations tied to internal staff actions and investigations.
- Some compliance employees left the company voluntarily during the recent restructuring.
- One employee was dismissed after sharing internal user information without authorization.
- Company policy requires strict protection of customer data and internal investigation records.
- Lawyers say no employee was fired for raising compliance concerns.
Binance concluded its letter by reiterating that it cooperates with global law enforcement. Representatives also said ongoing investigations limit the amount of detail that can be shared publicly.
Lawyers maintain the allegations cited in recent media reports do not reflect the company’s actual compliance work or investigative findings.
